An Investor Was Expecting a Return of 18% on His

question 68

Multiple Choice

An investor was expecting a return of 18% on his portfolio with a beta of 1.25 before the market risk premium increased from 8 to 10%. Based on this change, what return should he now expect on the portfolio?

• A) 20.0%
• B) 20.5%
• C) 22.5%
• D)26.0%

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Emotional Event

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A physical sensation or condition resulting from a lack of food, leading to a desire to eat.